The Adoption of Automated Teller Machine and Profitability in Baking Institution

Abstract The purpose of the study is to find out the impact of ATM and the profitability of the bank. The desk research method was used to get data about the impact of adoption of Automated_ Teller machine on the profitability .and performance of Centenary Bank Arua Branch. The study revealed that the technology is still a new phenomenon in Uganda. Little has been done on the impact of ATM technology on the bank's bottom line-client service, sustainability and profitability. The study also revealed that the problems associated with disabilities which can hinder a client from access and usage of ATM technology should' be taken into consideration when designing the ATM machine. They found out that with trained employees and customers, ATMs save time, clients don't need to come to the bank and wait in the queue or fill paper work every time they want to withdraw cash, and clients can access their accounts at their convenience. In order to get the best of the technology, where the cost are higher than the benefits, the impact of the ATM technology is negative on the bank's financial services. CONCLUSION: The question of the introduction of ATMs to improve on the profitability remains in balance because it is not only ATMs that bring in profitability in the bank but other factors also contribute to it.